The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1887-06-23
THE.BIG SMASH
OF tho Fidelity National Bank, Of
Cincinnati.
THE OFFICERS ARE ARRESTED
And Afterwards Bailcd Out in
Very Heavy Sums.
THE OFFICERS ARE ARRESTED
THE d EFICIT INCREASING,
Ono Of tho Lessons Taught by the
Recent Wheat Deal.
THE BANKS METHODS OF BUSINESS.

and Assistant Cashier Hopkins, OF the
Fidelity National bank, was anticipated
on the street, and therefore occasioned nc
surprise. When the officers arrived OF the
bank Hopkins WAS engaged in the clerical
department examining somo papers.
Cashier Baldwin sat at his desk. In his
rear, over desk, could be aeen the shape.
ly head, crowned with thick Jet black
hair, Of Vice.President Harper. 4
Marshal Uruer announced his errand ia
Vics.Preaident Harper and Cashier Bald.
win. Hopkins was summoned and be,
toe, lin few words was informed. The
Marshal read the several warrants 10 the
respective men and informed them that
they were under arrest. This srrest was
not wholly surprise, for it had been an.
ticipated from the persistency Of tho wild.
eyed rumors that had down about the
streots. Judge J, A. Jordan, Counsel for
Harper, was present when the arrest was
made, and in pursuance Of his advice, the
three bank officials then aud there waived
examination. and in few ninu.eB bond
was given for their appearance before the
United States Circnit Court ut it's next
regular term, October, 1887. Tho Gov
ernment was represented by Diatrict At
tornsy Burntt, Assistant Diasrict Attorney
Bruce. Bank Examiner Powell aud Uaited
States Commissioner Hooper:
The gentlemen s!guffed their willing
ness to give bond in any amount for their
After consultation the rep.
resentatives OF the Government agreed
that bond for the appearance ri L l..
Harper should be fixed at 5000, and
Hopkins and Baldwin at $4,000 each.
Bondsmen wers Immediately sent for.
Alex Mcdonald, W. H. ChatGeld, W. s.
Woods, Eugene Zimmerman, Fl. B More
head, Franklin Alter, Adam Wagner and
a number Of othera equally wealthy men
were soon ct the bank, and arrangements
ior giving bond we're soon complete.
BANK oErlcERs AGAIN ARRESTED.
Bank Examiner Eugene Powell has besn
exceedingly busy all day in an attempt to
get a knowledge Of the real condition Of
the Fidelity bank. The ,recsiver has not
yet undertaken the responsibilities of his
Office. Mr.. Powell to-day made dis.
coveries which justified him, under the
advice Of District Attorney Burnet and his
assistant, Bruce, to cause the arrest the
second time Of Messrs. Harper, Baldwin
and Hopkins. '1
This is new feature Of the case, es it
consists Of charge OF conspiracy to de-
fraud, by issuing on June 14.h three
drafts Of 100000 each in favor Of Viii.
shire, Eckert & Co.,, upon the Chemical
National bank OF New York, signed by B.
E. Hopkins, assistant cashier. i.
The charge is conspiracy to COM
nit an o1enss against the lava OF
the United States by uniawfully
and willfully miaapplying funds and
credits of a banking institution in pus-
suance Of which purpose they iasned
these drafts. The prisoners we're taken
together before United States Commits
sioner Hooper, where they waived exam
ination and were bound over to appear at
the October term Of the court. Mr.. Har-
per gave bond in the sum OF 3l5 900 and
the other two S50,00O each.
WELL, IN powNED.
During the exciting scenes Mr.. Harper
voluntarily approached one oflis conhden-
tial clerks, and voluntarily engaged in con-
versation with him. "Well, Pm downed,"
be remarked. II haven't dollar in the
world, but they can't keep mo down. In
a few years will be as high Gs Was be-
fore." Mr.. Harpef's voice t1emb!ed with
emotion as be continued: 81 got into
this by standing by my friends. I got
into this through jos Wiltshire. / hadn't
a dollar In the Chicago wheat deal.
honored an overdrawn draft OF Wiltshire
for S2S,000, and found that I had gone
that far | had TO 90 further to help him out
Of the hole. would have been all right
except for the Board Of Trade in Chicago,
and ! would have coma out $4,000, ,0G0
ahead but the Chicago Board committed
murder by changing the rules on me.
They did something contrary to all pre-
cedent when they made Gll the wheat reg.
ular. 1t killed the Fidelity. 1t killed me
and every body. 1t WAS monstrous and
atrocious thing to do" G ~
Bank Examiner Powell on Monday
afternoon demanded statement from the
bsnk, and received one'showing a balance
on hspd Of Sl,lG0,0 Of cash. Then, call.
amazed to be shown a lead PENCIL memor.
andum reading: Wiltshire, Eckert & Co.,
5000, 900; J. W. Wiltshire, $4,000, and sc
% through long list. There Was nc
collateral, no aecurity whatever. Mr..
Baldwin and Mr.. HopEins. were unable to
make any explanation and Mr.. Harper
could offer none. Sil ~
Even after this, it is said. tho offer to
permit the bank to continue was made II
these three men were expelled, and new
capital brought in; but when the inquiry
was ns4e ~ to how much would be re.
quired. the Snsyer Was 81 ,OOO. 600 at least.
That staggered tho directors, and
although they stiil hopei to icrH 2 reor.
ganization, 1t is most probable that the
fear that a further examination would re-
veal a further deficit deferred them.
The fact is that Harper concealed FROM
the directors hiR connection with the
wheat deal. HeiD sai4 t9 haye ADMITTED
Yesterday that be did not go Into ,be
wheat deal himself, but that he honoret
an oyerdrsft for Wilshire for $4,000, ant
then, put In the rest 70 fsve that. HI
charges the whole break to THO action Q
the Chicago Board OF Trade making al
wheat regular. .fsp r3ss
TIE DEFIclT INCREASES.
u As the examination OF the bank pro
ce4da, the cayernous deficit increases. I
is now common talk on tho streets tina
the liabilities will reach So, 600 900, Will
the assets dwindle in proportion. 1t is
ioregone conclusion that the depositor
get neKt to nothing. This Is the eenera
talk, but Of course unotticial and can't b
verified until the Examiner comp!etes hl
work aud makes his report. 1T is state
to-day that the memorandum which is th
substitute ior collateralas show Wilshir
used 81, 100, 100 Of the banks money, an
collaterals lor othe. loans were hypo!he
Gated in New York and elsewhere, It !
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